GM says new wave of Trump tariffs could force U.S. Job cuts

The automaker said that the president’s threat to impose tariffs on imports of cars and car parts — along with an earlier spate of penalties — could drive vehicle prices up by thousands of dollars.

The “hardest hit” cars, General Motors said in comments submitted to the Commerce Department, are likely to be the ones bought by consumers who can least afford an increase. Demand would suffer and production would slow, all of which “could lead to a smaller GM.”

The president has promoted tariffs as a way to protect U.S. businesses and workers, aiming at dozens of nations with metal tariffs, as well as bringing broader levies against Chinese goods. But companies, which rely on other markets for sales, production and materials, have been increasingly vocal about the potential damage from his policies.

The warning by GM, echoed in comments by trade groups and other automakers, could test the president’s aggressive approach to trade and his commitment to business. In the past, Trump has lauded General Motors for its job creation and vowed to defend the auto industry.

A GM spokeswoman, Dayna Hart, said that the company had no contingency plans calling for job cuts, but that such a move was “something that could happen.”

“We are still assessing the impact,” she added.

The White House did not respond to a request for comment.

GM and other automakers rely heavily on parts and materials from overseas to build their cars. The president’s threat to pull out of the North American Free Trade Agreement could hurt the industry’s supply chain, which integrates operations in the United States, Canada and Mexico.

“If there’s a full-blown trade war, it will be pretty tough for the auto industry and consumers,” said Michelle Krebs, an analyst at AutoTrader.com.

“Consumers are already facing headwinds in credit and average prices going up,” she said. “If you add a tariff, my guess is a lot of people just won’t buy new cars.”

The increasingly global nature of automotive supply chains has left manufacturers especially exposed.

U.S. automakers, which export an estimated 2 million vehicles, rely on global sales as a buffer in tough times. Retaliatory tariffs from Europe or China could weaken their overseas business.

This article originally appeared in The New York Times.

GM says new wave of Trump tariffs could force U.S. Job cuts

The automaker said that the president’s threat to impose tariffs on imports of cars and car parts — along with an earlier spate of penalties — could drive vehicle prices up by thousands of dollars.

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